In the tax system, how is the calculation basis used?

The calculation basis is used to determine how taxes should be applied. Choose the base price option to have taxes calculated off the base price of sold items. For those requiring more complex tax scenarios (i.e., nested taxes or "tax on tax"), the calculation basis can be linked to any other tax code which uses the same tax class. When another tax code is chosen as the calculation basis, taxes will be calculated against the derived amount from the referenced tax code.